The weekly Federal Executive Council (FEC) on Wednesday, August 4, approved the acquisition of 20 per cent minority stakes by the Nigerian National Petroleum Corporation (NNPC) in the Dangote Petroleum and Petro-Chemical Refinery.
The Federa Executive Council at its virtual meeting presided over by the Vice President, Prof.Yemi Osinbajo at the Presidential Villa, Abuja also approved contracts for the rehabilitation of Warri and Kaduna refineries at a cost of $1.4 billion.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, who briefed State House correspondents shortly after the meeting, said the acquisition was in the sum of $2.76 billion.
“The Federal Executive Council also approved the acquisition of 20 percent minority stakes by the NNPC in the Dangote Petroleum and Petro-Chemical Refineries in the sum of 2.76 billion dollars”, he said.
On the rehabilitation of the refineries, the Minister said: “The FEC, today, August 4, approved the award of contract for the rehabilitation of Warri and Kaduna Refineries at the combined total sum of 1.5 billion dollars– 897. 67 million dollars for the first Warri Refinery and 586. 9 million dollars for the Kaduna Refinery.
“The completion of the rehabilitation of the Warri and Kaduna Refineries is going to be in three phases.
“First phase is within 21 months; in 23 months, phase 2 will be completed and in 33 months, the full rehabilitation will be completed.
“Work has already commenced in Port Harcourt; and already the first 15 per cent of the contract sum has been paid to the contractor and the contractor has been fully mobilized to site”.
Sylva, informed that the council also discussed the need to give periodic updates on the projects, adding that there will soon be an inspection of work in the Port Harcourt Refinery.
Expectedly, when rehabilitation work is completed in all three refineries, the issue of importation of fuel and the attendant subsidy will be a thing of the past.